Most Asian stock markets moved higher on Monday, with Japan and South Korea recording fresh highs, though the overall advance was limited by a jump in oil prices and the impasse in negotiations between Washington and Tehran.
Regional optimism followed a strong performance in the United States, where the Nasdaq and S&P 500 finished at new highs, lifting appetite for chipmakers and AI-related equities in Asia. During Asian hours, U.S. stock index futures were largely unchanged.
South Korea and Japan hit new peaks
South Korea's benchmark KOSPI rose 2.3% to 6,630.35 points, marking a new record. Semiconductor heavyweight SK Hynix (KS:000660) surged by more than 6% to an all-time high, while Samsung Electronics (KS:005930) added about 2.5%. The KOSPI had climbed nearly 5% in the prior week, driven by robust semiconductor earnings and AI-linked progress at SK Hynix.
In Tokyo, the Nikkei 225 advanced as much as 1.6% to a record 60,652.98 points, with the broader TOPIX index up 0.7% on the session.
Monetary policy focus in Japan
Market participants are closely watching the Bank of Japan, which will complete a two-day meeting on Tuesday with a rate decision and its quarterly outlook report. The BOJ is widely expected to leave its short-term policy rate at 0.75% and maintain a cautious posture as policymakers weigh the economic effects of rising oil prices and tensions in the Middle East. Attention is shifting to forward guidance, with market expectations that the central bank could indicate a possible rate increase as early as June or July if inflationary pressures persist.
Energy and geopolitics weigh on sentiment
Despite the equity gains, sentiment was tempered by a sharp rise in crude oil on supply concerns. Brent crude traded above $107 per barrel as talks between Washington and Tehran stalled and the Strait of Hormuz was reported largely closed, disrupting a significant route for global oil shipments.
U.S. President Donald Trump on Saturday canceled a planned envoy trip to Pakistan intended to further Iran negotiations, saying Tehran could initiate talks if it chose to do so.
Other regional moves and U.S. catalysts
Away from Japan and South Korea, China's Shanghai Composite and Hong Kong's Hang Seng were largely flat. Singapore's Straits Times Index fell 0.5%, while Australia's S&P/ASX 200 eased about 0.2%. Futures for India's Nifty 50 ticked up 0.1%.
Investors are also focused on upcoming U.S. developments, including a Federal Reserve policy decision later this week and a heavy earnings calendar from major technology companies including Alphabet, Microsoft, Amazon, Meta Platforms, and Apple.
Overall, markets showed a technology-led advance concentrated in semiconductor and AI-linked names, while energy market developments and stalled diplomatic talks between the U.S. and Iran acted as a cap on broader gains.